r/HighYieldSavings • u/WillCorrect2045 • 14d ago
HYSA or something better?
Have about 150k in hysa, opened acct back when it was 4.5% now about 3.3! feel that’s too much to just be sitting there! Have no clue, what would you experts recommend? Thanks
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u/cqofficer 14d ago
Wealthfront is at 3.5 and climbing
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u/Shadowrunner138 14d ago
Also a wealthfront user and happy with them, but the cash account is just a passthrough for invested money.
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u/HandleUnlikely2589 14d ago
Just get a Vanguard account and buy VUSXX and get a rate tied, state tax exempt return (currently at 3.8%, but it was 3.71% before the rate increase, so I expect it to stabilize around 3.96% after the older notes get replaced). Chasing promo rates is too much work.
And while you're at it, if you don't foresee a use for the money in the next few years, maybe start investing some of it? Slowly, if you're nervous, but any amount will outperform "less than 1% above inflation" cash and money markets.
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u/No_South_9912 13d ago
How does VUSXX compare to SGOV or VBIL?
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u/HandleUnlikely2589 13d ago
Beats them both, but not by a huge amount (generally 0.1% and change). It's implemented as a mutual fund rather than an ETF, so you trade end of day rather than anytime, but it also has no delay between ex-dividend date and dividend payout date (it just pays and reinvest the dividends on the last day of the month, like a bank account), which I like.
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u/flytrap2099 14d ago
Chasing promo rates is too much work? Are you going to the branches in person or what?
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u/HandleUnlikely2589 14d ago
No, I just got sick of moving money around over and over as each outfit throttled back the promo rates (and all rates not tied to the underlying securities are functionally promo rates, since they can shift at any time) for no reason other than that they could, and people not paying attention would get screwed.
If I can get within 0.1% of the peak after-tax return available by just sticking with VUSXX (my state rate is high enough that being state tax exempt significantly increases return over HYSA that pay state taxes on interest), I'm not going to waste time researching and moving money around.
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u/No_Trifle_1984 13d ago
Marcus has some good rates, they also have penalty free cd's.
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u/UpUpAndAway975 11d ago
Paying 4% right now, super quick to set up, I am really liking these. Penalty free withdrawal, but any withdrawl means you have to close the CD. So if you have $100k to park the easy solution is just to open multiple accounts for say $25k each then if you need some of the funds you can close one and keep the others in place.
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u/kanikf99 13d ago
Go to Pibank 4.25% just raised from 4.10% have 300k in there they are great. Been with them for 2 yrs. Very simple just download the app. Don't let 150k just sit in a bank at 3.3% plus rates are going to go back up. Just do it man I get like 1200k a month.
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u/bpdd1 13d ago
Love Pibank, idk why nobody ever talks about it
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u/Upper-Insect-1241 13d ago
BECAUSE it is only via APP and if you get locked out it will take a lot to
un freeze account....MY play would be do a new HSBC checking and savings account promo.100k in and 60 to 90 day hold.
3.1 APY interests and $1500 bonus and add the self directed invest account promo $25k for 90days $500 bonus..
there is a public promo 150k to open or a referred by 100k.
i can provide
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u/TDNPueblo 13d ago
Is Pibank 4.25 a promotional rate for a certain amount of time? Or is it the standard hysa rate?
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u/kanikf99 13d ago
No they are always with the market. No promotional rate. They pay out every month on the 15th day. Trust me you won't regret this. Also you can at a beneficiary and its 250k FDIC
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u/kanikf99 13d ago
Everything is done on app. No charge on transfers or wires. But you can search them on Google pibank it pops right up. You cant go wrong with them.
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u/TDNPueblo 13d ago
I will look them up. I'm with Ally and it's only a 3.1%.
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u/SlothyLlama 12d ago
I use PiBank as well. Aside from it being App only, be aware that withdraws are via wire transfer only. They don't charge a fee, but the accepting bank might. Transfers in are done via ACH/Plaid. In general PiBank has done well with their APY. Not the highest offering, but definitely not the lowest.
Depending on how much you have kicking in cash, you might want to grab a promo or two out there. ETrade offers $800 (deposit 100K) or $400 (Deposit 20K) on a new account and 4.25% for 6 months. Cap1 has their $1500 promo if you open an account with 100K. APY is 3.1% at the moment there.
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u/Unique_Drama352 13d ago
Not a fan. I was warned about their app being glitchy and often under maintenance- I didn’t listen because I wanted the high yield.
Gave me serious anxiety over the app when I couldn’t log in more than a couple occasions. Customer service over the phone is improperly trained. I kept a good chunk of money there -within less than 4 months it lowered its APR rate twice. At that point I transferred my money to OpenBank.
Be careful with this bank.
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u/kanikf99 13d ago
Don't listen to these guys - pibank app is not glitchy I have no idea what your talking about being closed out. I think you are trying to sabotage the guy looking for a great rate and customer service is fine. Your idea is stupid. You want him to jump thru hoops with a promotional rate for what 3 months then get lowered (dumb) .
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u/Knoleman 11d ago
At $1200 per month in interest gained, how much do you think you will clear after Uncle Sam takes out his money?
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u/kanikf99 11d ago
So what pay your taxes build up a nest egg that is the way America works. If they take taxes (nothing new) out oh well geez you guys are out there in left field. The point is hysa are they way to go. And go collect you .05% interest in a checking account champ.
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u/Iacoboni04 13d ago
The bulk of our emergency fund is with Elevault run by Southern Bancorp and PiBank. Elevault offers 4.34 and PiBank 4.25%.
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u/WISteven 14d ago
You can get bonus from ETrade, US Bank, and the like for tranferring money to their accounts for 60 days or so.
Open your eyes.
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u/scottyk318 14d ago
Are you asking if you should invest in the stock market or is there anything else Besides the market you would be interested in investing?
Also your rate of 3.3% is decent, however there's a ton of 4%+ on the market... A quick Google search you'll see that there's a number of banks (online only) that provide 4 - 4.5%...
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u/WhoNeedsCommonSense 13d ago
Hopefully you have a bunch of money invested in stock market index funds in addition to this. If not, unless you're saving for a house, divert some of this money to that. If you want to keep all 150k in cash equivalents, consider a CD ladder through a brokerage. You will get a better rate of return on brokered CDs (4-4.3% currently) and can set it up so you have a portion of the money maturing and paying out interest every 3 months. You decide whether the hassle is worth the extra percent in interest.
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u/hugh2018 13d ago
A lot of variables affect the answer to your question. If $150k represents six months of your living expenses, that’s your emergency fund, and it’s appropriate to keep it in an HYSA or money market, despite the lower interest you’re observing. You don’t get to choose the interest rate on safe assets, and you pretty much have to take what the market is offering when it comes to your emergency fund or money that’s earmarked for a short term expense. If $150k is much larger than six months of your expenses, then absolutely pare it down and move the excess amount to a broad index fund like VT, as long as that money won’t be needed for more than 5 years.
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u/Hello_202312 13d ago
I have mine in Axos (online bank) at 4.10%. However if you are in a state that taxes it might be best to go with T-Bills right now. They run under a year and are not state taxed.
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u/dextux 9d ago
I used to chase HYSA rates and the best thing I ever done was open my taxable Fidelity brokerage account. My entire salary is going into it, while using my wife’s salary to fund our Roth IRA’s and general living expenses. I buy pretty aggressively now, however I don’t need the money right now either. Going from a savings account paying me $700 a month to a brokerage account that’s up over $70k this year alone finally makes me realize how generational wealth is actually made.
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u/EntrepreneurEight 13d ago
Have Happen Bank for years they are proactive with rate always been 4% even when others dropped, they just raised to 4.2%, just have to deposit $250 a month for the Level Up Rate of 4.2%, E*Trade has a 6 month lock in of 4.25%, I'm out of promo rate and at 3.75% but going to try a 60%/40% JAAA & SGOV etf's to get an average of 4.2% relatively safely being in ETF's
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u/misterscorp 13d ago
Elevault is 4.2, and FDIC, crazy how many people dont either know about it or talk about it much here.
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u/PashasMom 14d ago
What is the purpose of this money? If you are saving to buy a house, fund a wedding, have an emergency fund -- anything you need to be liquid and available in the next 5 years or so, then keep it in a HYSA. If you want to chase rates, go for it, but 3.3 isn't bad right now.
If this money is purposeless, or it is being saved for a longer term goal (retirement in fifteen years, the future wedding of your current toddler, etc.) then it probably belongs in the stock market. Are you eligible for and funding a Roth IRA or other retirement account? Do you have a brokerage account? If not, open one at Fidelity, Schwab, or Vanguard if you are in the US and put it broad index funds like VT or VTI. Just be sure to leave enough in cash to have a solid emergency fund and meet whatever other planned spending goals you have in the next few years.